Location: Osceola County, MI | Metro: Mecosta County, MI
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,220 | $236,176 | 0.52% | F |
U.S. Census Bureau data (2024)
The ZIP code 49639 is not predominantly a renter-heavy area, with only 9.3% of its population being renters. This suggests that the demand for rental properties, particularly those accepting Section 8 vouchers, is relatively low compared to areas with higher percentages of renters. The median household income in this ZIP code is $64,388, which places it above the national average and indicates a generally stable economic environment.
The typical market rent of $792 is significantly lower than the Fair Market Rent (FMR) of $970 set for FY 2026 in the metro area. This implies that landlords in ZIP 49639 can charge below the FMR and still be competitive in the market. However, the percentage of local income that goes towards rent is approximately 15%, calculated by taking the market rent and dividing it by the monthly equivalent of the median household income ($64,388/12 = $5,365.67). This figure is reasonable and aligns with general housing affordability guidelines that suggest no more than 30% of income should go towards housing costs.
Given the lower proportion of renters and the economic stability indicated by the median income, landlords in ZIP 49639 can expect tenants who are likely to have additional sources of income beyond just their Section 8 vouchers. These tenants will need to contribute the difference between the voucher amount and the actual rent, which in this case would be $178 per month if the landlord charges the FMR of $970. Landlords should prepare for a tenant pool that is somewhat selective due to the lower demand for rentals and the ability to pay the gap between the voucher and market rent.
In conclusion, while ZIP 49639 is not a hotbed for Section 8 voucher usage, it offers landlords a moderate opportunity to serve a niche market of tenants who can supplement their voucher income. The economic conditions support a stable tenant profile capable of meeting the financial requirements of renting in this area.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.